7 Title: Innova Captab IPO Witnesses Strong Subscription, GMP Falls

Introduction:

The initial public offering (IPO) of Innova Captab, a pharmaceutical company in India, has garnered significant interest from investors. On the third day of bidding, the IPO was subscribed 11.5 times, indicating the positive sentiment surrounding the company. However, the Grey Market Premium (GMP) for Innova Captab has experienced a decline. Let’s delve into the details of the IPO subscription and the implications for investors.

Innova Captab IPO Subscription Details

The IPO of Innova Captab has seen robust subscription numbers throughout the bidding process. On the first day, the issue was subscribed 1.41 times, and by the end of the second day, it reached 3.65 times. On the third day, the subscription surged to 11.5 times, reflecting the strong demand from investors. The company aims to raise Rs 570 crore through the IPO, with the price band set at Rs 426-448 per share.

Decline in Grey Market Premium (GMP)

Despite the strong subscription numbers, the Grey Market Premium (GMP) for Innova Captab has witnessed a decline. Initially, the GMP was around Rs 210-215, but it has now fallen to approximately Rs 90 per share. This decrease indicates a potential upside of 20% for investors in the grey market.

Business Overview of Innova Captab

Innova Captab operates in three business segments, providing contract development and manufacturing services to domestic pharmaceutical companies. Additionally, the company offers branded generics in the domestic and international markets. Their product portfolio includes tablets, capsules, syrups, injections, ointments, and liquid medicines. Innova Captab has a wide range of generics, with over 600 different types produced and sold in the financial year 2023. The company also exports its branded generic products to multiple countries.

IPO Details and Investor Response

The IPO of Innova Captab consists of a fresh issue worth Rs 570 crore, while existing shareholders are selling 55,80,357 equity shares through an offer for sale (OFS). Investors can bid for a minimum lot size of 33 equity shares. The non-institutional investors (NIIs) portion was oversubscribed by 24.43 times, the retail portion by 11.43 times, and the qualified institutional bidders (QIBs) portion by 1.48 times.

Book Running Lead Managers and Registrar

ICICI Securities and JM Financial are the book running lead managers for the Innova Captab IPO. Kfin Technologies is the registrar for the issue.

FAQs:

1. How many times was the Innova Captab IPO subscribed on the third day?

   • The Innova Captab IPO was subscribed 11.5 times on the third day of bidding.

2. What is the price band for the Innova Captab IPO?

   • The price band for the Innova Captab IPO is set at Rs 426-448 per share.

3. What business segments does Innova Captab operate in?

   • Innova Captab operates in contract development and manufacturing services, as well as branded generics in the domestic and international markets.

4. What is the Grey Market Premium (GMP) for Innova Captab?

   • The Grey Market Premium (GMP) for Innova Captab has fallen to around Rs 90 per share.